Download HomeTown Bankshares Corporation Announces $14 Million Private

News Release
FOR IMMEDIATE RELEASE
For more information contact:
Susan K. Still, President and CEO, 540-278-1705
Charles W. Maness, Jr. Executive Vice President and CFO, 540-278-1702
HomeTown Bankshares Corporation Announces $14 Million Private Placement
of Convertible Preferred Stock
ROANOKE, VA (June 28, 2013) — HomeTown Bankshares Corporation (the “Company”)
(OTCBB: HMTA), the parent company of HomeTown Bank, (www.hometownbankva.com)
announced today the successful completion of a $14 million private placement of convertible
preferred stock. The Company issued 14,000 shares of its 6.0% Series C Non-Cumulative
Perpetual Convertible Preferred Stock with a liquidation preference of $1,000 per share in a
Reg. D private placement to institutional and accredited investors. The convertible preferred
stock pays quarterly dividends equivalent to six percent (6%) per annum, and converts into
shares of the Company’s common stock based on a conversion price of $6.25 per share of
common stock, subject to adjustment.
The Company intends to use the net proceeds from this offering to redeem the $10,374,000 of
its Fixed Rate Cumulative Perpetual Preferred Stock, Series A and Series B, originally issued to
the U.S. Department of the Treasury under the Troubled Asset Relief Program Capital Purchase
Program. The Company intends to use any remaining net proceeds to support future growth
and for general corporate purposes.
Susan Still, President and Chief Executive Officer, commented, “We are pleased with the
response to our capital raise. The offering was a vote of confidence by the investment
community showing strong support for our Company and its strategic plan. This new capital will
allow the Company to continue to grow organically and will support the capital needs of
HomeTown Bank.”
The Company engaged the investment banking firm of FIG Partners, LLC to act as its sole
placement agent to assist with the offering and the law firm of Gentry Locke Rakes & Moore,
LLP acted as legal counsel.
About HomeTown Bankshares Corporation:
HomeTown Bankshares Corporation was established in September 2009 as the bank holding
company for HomeTown Bank. HomeTown Bank was organized and incorporated under the
laws of the State of Virginia and commenced operations in November 2005. HomeTown Bank
offers a full range of banking services to small and medium-size businesses, real estate
investors and developers, private investors, professionals and individuals. HomeTown Bank
serves the Roanoke and New River Valleys and Smith Mountain Lake through five branches,
seven ATMs and a HomeTown Mortgage office. A high level of responsive and personal service
coupled with local decision-making is the hallmark of its banking strategy. For more
information, please visit www.hometownbankva.com.
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Forward-Looking Statements:
Certain statements in this press release may be “forward-looking statements.” Forward-looking
statements are statements that include projections, predictions, expectations or beliefs about
future events or results that are not statements of historical fact and that involve significant
risks and uncertainties. Although the Company believes that its expectations with regard to
forward-looking statements are based upon reasonable assumptions within the bounds of its
existing knowledge of its business and operations, there can be no assurance that actual results
will not differ materially from any future results implied by the forward-looking statements.
Actual results may be materially different from past or anticipated results because of many
factors, some of which may include changes in economic conditions, the interest rate
environment, legislative and regulatory requirements, new products, competition, changes in
the stock and bond markets and technology. The Company does not update any forward-looking
statements that it may make.